All 24 Invoice Processing questions
More in Invoice Processing
What is the difference between a PO and a non-PO invoice? What key data fields must be captured from a supplier invoice? What is invoice coding? What does 'three-way match' mean in one sentence, and why does invoice processing depend on it? What is a self-billing invoice? Walk through the journal entry when a supplier invoice is recorded. What is a duplicate invoice and how do you prevent duplicate payments? How does electronic invoicing (e-invoicing) and OCR improve AP processing? What are invoice exceptions and how are they handled? What is an approval workflow and why is it important?
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Accounts Payable & Receivable › Invoice Processing

What is the difference between an invoice and a receipt?

Beginner

Answer

An invoice is a request for payment issued before payment, stating what is owed and by when. A receipt is proof that payment has been made. In AP you process invoices to create payables; a receipt confirms the transaction is settled. Confusing the two can lead to paying against non-invoice documents.
Real-world example AP records a supplier invoice as a payable, then files the bank receipt as evidence once the payment clears.

Common follow-ups: Which document creates a payable? | Why not pay from a receipt?

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All 24 Invoice Processing questions